Could this be the reason for the dramatic increase in volume over the past two days? I'm thinking this could be a very good thing.
Press Release Source: SPEEDCOM Wireless Corporation
SPEEDCOM Reports Year-End 2003 Financial Results
Thursday February 12, 4:05 pm ET
Company Announces Stock Distribution
SARASOTA, Fla.--(BUSINESS WIRE)--Feb. 12, 2004--SPEEDCOM Wireless Corporation (OTCBB:SPWC - News) today announced financial results for the year ending December 31, 2003. The company also announced its board of directors approved an in-kind distribution of shares of Campbell, California based P-Com, Inc. common stock, which it received in December 2003 in connection with the sale of its business, to SPEEDCOM shareholders of record as of February 20, 2004.
ADVERTISEMENT
For the twelve months ended December 31, 2003, revenues were $4,381,000 as compared to $7,676,000 for the twelve months ended December 31, 2002. Operating loss was $4,405,000 or $(.28) per share for the twelve months ended December 31, 2003 as compared to an operating loss of $4,953,000 for the twelve months ended December 31, 2002. Gross margin was 34% of net revenues for the twelve months ended December 31, 2003. Year-end 2003 results reflect the sale of SPEEDCOM's business operations to P-Com on December 10, 2003.
Including a gain of $12,260,000 on its asset sale to P-Com, SPEEDCOM reported net income of $7,450,000, and income attributable to common stockholders of $6,590,000, or $.42 per share, for the year ending December 31, 2003.
SPEEDCOM will distribute approximately 61,000,000 shares of P-Com common stock to its shareholders using a record date of February 20, 2004. The distribution ratio is estimated to be approximately 1 share of P-Com common stock for each 2 shares of SPEEDCOM common stock held on the record date. SPEEDCOM reported 114,652,626 shares issued and outstanding as of February 9, 2004 in its Form 10-KSB. The distribution date of the P-Com shares is on March 5, 2004.
No action is necessary for SPEEDCOM shareholders. SPEEDCOM shareholders who hold shares through a broker will have P-Com shares credited to their account. Shareholders who are registered holders will receive a P-Com certificate via mail to their address of record. Registered holders are encouraged to verify the accuracy of their address information through February 20 by calling American Stock Transfer at 800-937-5449.
SPEEDCOM shareholders should direct questions concerning the P-Com common stock distribution to EquiServe Shareholder Services at 781-575-3120.
Recent Highlights
SPEEDCOM's board announced plans to distribute most of SPEEDCOM's P-Com common stock to shareholders
The company exchanged all outstanding shares of its Series B Convertible Preferred stock for common stock at an exchange rate of $.12
Since October 2003, SPEEDCOM converted $2,792,000 of liabilities into common stock at $.12, effectively eliminating debt from its balance sheet
The company completed an asset sale and received consideration of 63,500,000 P-Com common shares
SPEEDCOM stockholders approved an asset sale agreement and increase in SPEEDCOM's authorized common stock from 250,000,000 to 500,000,000 shares. Voting stockholders voted in favor of both proposals by more than 85%
The company signed a definitive agreement with P-Com to enable P-Com to acquire operating assets and certain liabilities of SPEEDCOM in exchange for shares of P-Com common stock
"We look forward to our upcoming stock distribution to SPEEDCOM shareholders and are pleased by the success of our recent recapitalization and debt conversion initiatives," said Mark Schaftlein, CFO of SPEEDCOM.
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